Standard Purchase and Sales Agreement
The purchase and sale agreement is a signed contract between you and the owner of the property stating the terms and conditions of the sale. The purchase and sale agreement should include the following statement or one very similar:
EXISTING MORTGAGE(S): Property is currently in or heading towards foreclosure. Sale contingent on buyer negotiating acceptable terms with the lender(s). Acceptable terms may include short sale, mortgage modification, note purchase, etc. Escrow balance has been calculated into the price and will Transfer to the Buyer along with title. Buyer may take title subject to this debt.
In addition to the Purchase and Sale Agreement there are a number of necessary items should receive from every seller. Be sure to follow the instructions in What To Get From The Seller for every short sale transaction you partake in.
Why Is The Purchase And Sale Agreement So Important?
The purchase and sale agreement not only sets the terms and conditions of the sale but it gives you a legal interest in the property which gives you many legal rights in the property that you would not otherwise have.
Some states have passed laws that limit who can conduct business with people that are in foreclosure. Having a legal interest in the property may allow you to privileges you would otherwise not have.
NOTE: We are not attorneys and we do not provide any legal advice. Please seek competent counsel for the legality of working with foreclosures in your states.